Regulator to investigate competition in Dutch postal market
The Dutch postal regulator has launched an investigation into competition concerns within the unsorted business mail market in the Netherlands.
Changes to the 2009 Postal Act, which came into effect in January this year, have given the Consumer and Markets Authority (ACM) increased powers to intercede in the postal market if it believes competition is being unnecessarily restricted.
The regulator held a public consultation exercise in January and February to seek views on whether there were problems in the Dutch postal market.
As a result, the ACM said last week that it has decided to look into the distribution of unsorted mail – mainly mail that is delivered the day after drop-off at a postal facility.
The ACM said the postal company Sandd, the biggest rival of dominant player and universal service provider PostNL, is no longer active in the unsorted mail segment. This means that small businesses can only send their mail locally or regionally without relying on the services of PostNL, the regulator said.
“This dependence may present risks to competition, such as high tariffs or unfavourable conditions for small mailers — this has become clear from the consultation that the ACM held following the amendment of the Postal Act,” the regulator said.
Analysis
The ACM will carry out market analysis to look at PostNL’s large market share in the unsorted mail market and what kind of risks that might present to competition.
“Based on the results of this analysis, ACM may impose obligations on the dominant market player to make postal services more competitive,” the agency said.
Commenting on the decision by the regulator to investigate its position in the unsorted mail market, PostNL said it would cooperate.
The company said in a statement: “PostNL has taken notice of the intention of the Authority for Consumers & Markets to carry out market research in the coming months on unsorted mail that should be delivered within 24 hours after posting. PostNL will cooperate with this research and has confidence in the outcome.”
